Guide
Why use an insurance broker
An insurance agent works for an insurer. A broker works for you. That is not a marketing distinction, it is how the law defines the two. The Insurance Act No. 38 of 2021 describes an insurance broker as a company that is not an agent of an insurer or reinsurer and that acts independently.
A broker starts with your risk, not with a product
Before recommending anything, a good broker will ask what your business or household would actually lose if something went wrong. Some of those risks are worth transferring to an insurer. Others are cheaper to manage yourself. You should expect a broker to tell you when not to buy cover.
A broker knows the exclusions
Two policies with the same premium can behave completely differently at claim time. Brokers read the terms, the benefits and the exclusions across competing products, which is how they find cover that fits your circumstances rather than the average customer's.
A broker handles the claim
This is the part clients underestimate. When you claim, you are negotiating with a company that does this every day and you do not. Your broker acts for you in that process.
Your money is protected
A licensed broker must pass your premium to the insurer within fourteen days, or another period agreed in writing with the insurer, and must hold client money in a separate account from the firm's own. If a licensed broker or insurer causes you financial loss, the Insurance Fidelity Fund exists to compensate individuals and smaller businesses.
What a broker costs you
Brokers are usually paid by commission from the insurer rather than by a fee from you. Ask any broker to explain how they are remunerated. A member of IBAZ should answer that question without hesitating.
Guide
How a claim works
A claim is the moment insurance either works or does not. Most claims that fail do so for reasons that were fixable at the start: a risk that was never disclosed, a document that was never kept, or a delay in telling anyone what happened.
Tell someone straight away
Notify your broker or insurer as soon as you can. Policies set time limits for notification and a late report gives an insurer grounds to question the claim. If a crime is involved, report it to the police first and keep the report number.
Keep the evidence
Photographs, receipts, police reports, medical records, repair quotations. Do not dispose of damaged property until it has been inspected. What you can prove decides what you are paid.
The assessment
For larger losses an insurer will appoint a loss adjuster, or a motor assessor for vehicles, to establish what happened and what it costs. They are appointed by the insurer. Your broker is the person acting for you.
Settlement, and what an excess is
Most policies carry an excess, the first part of any loss that you carry yourself. A claim smaller than the excess is not worth submitting. The insurer settles the balance up to the sum insured.
If a claim is declined
Ask for the reason in writing and check it against the policy wording. Your broker should take the matter up with the insurer on your behalf. If you are not satisfied and your broker is an IBAZ member, you can raise it with us. Matters that may breach the Insurance Act go to the Pensions and Insurance Authority.
Guide
Insurance for a Zambian business
Small and medium enterprises employ most of Zambia's private sector workforce and buy very little insurance. A single fire, theft or liability claim ends businesses that were otherwise sound. These are the covers a broker will usually discuss with you.
Property, fire and perils
Covers buildings, stock, plant and equipment against fire, flood, storm and similar events. Get the sums insured right. Under-insure and the insurer can reduce a claim proportionally.
Business interruption
Fire cover rebuilds the premises. Business interruption cover replaces the income you lose while it is being rebuilt. The second is what usually decides whether a business reopens.
Liability
Public liability covers injury or damage you cause to third parties. Employers liability and the statutory workers compensation obligations cover injury to your own staff. Professional indemnity covers advice that turns out to be wrong.
Motor and goods in transit
Third party motor cover is the statutory minimum in Zambia. Comprehensive cover also pays for your own vehicle. Goods in transit covers stock while it is being moved.
People
Group life, medical and personal accident cover for employees. These are often the benefits that decide whether good staff stay.
Questions
Frequently asked questions
Is an insurance broker the same as an agent?
Do I pay more by going through a broker?
How do I know a broker is licensed?
What happens if my broker does not pass on my premium?
Who do I complain to?
Does IBAZ sell insurance?
Talk to someone who works for you
Every firm in our directory is an IBAZ member and licensed by the Pensions and Insurance Authority.